Carnival Stock Surges 9.78% on Record Q2 Earnings

Carnival Corporation (NYSE: CCL) reported a remarkable second-quarter performance, driving its stock price up by 9.78% in early trading. The cruise operator exceeded analyst expectations and raised its full-year guidance, showcasing its resilience amidst economic uncertainty and geopolitical volatility.

The company achieved record-breaking customer deposits of $8.5 billion and its highest-ever second-quarter operating results. This performance surpassed its 2026 Sea Change financial targets 18 months ahead of schedule. Net income surged nearly $475 million year-over-year, with adjusted earnings per share of $0.35, significantly outperforming the consensus estimate of $0.24.

Carnival's revenue for the second quarter reached $6.33 billion, surpassing analyst estimates of $6.21 billion. The adjusted net income was $470 million, or $0.35 per share, more than tripling the adjusted earnings from the same quarter in 2024. This growth was driven by higher ticket prices, increased onboard spending, and favorable timing of expenses between quarters.

CEO Josh Weinstein attributed the strong performance to robust close-in demand and onboard spending levels. The company's booking curve continues to be the furthest out on record, with customer deposits reaching an all-time high of $8.5 billion. This reflects both higher prices and strong demand for future sailings.

Carnival's operational excellence was further highlighted by achieving adjusted return on invested capital and adjusted EBITDA per available lower berth day at their highest levels in nearly two decades. The company exceeded its 2026 Sea Change financial targets 18 months early, demonstrating the effectiveness of its strategic initiatives. For the full year, Carnival raised its adjusted earnings per share guidance to approximately $1.97, up from previous expectations of $1.83, representing a $200 million improvement in adjusted net income guidance.

Carnival Corporation's impressive financial metrics included a trailing twelve-month revenue of $25.42 billion and net income available to common shareholders of $2.05 billion. The company's profit margin of 8.07% and return on equity of 25.87% highlighted its improving profitability and efficient capital utilization.

Analyst sentiment remained overwhelmingly positive, with price targets ranging from a low of $21.00 to a high of $34.00, and an average target of $28.55, suggesting additional upside potential from current levels. The company’s forward price-to-earnings ratio of 12.99 and enterprise value-to-EBITDA ratio of 9.52 indicated reasonable valuation metrics despite the strong stock performance. With cumulative advanced bookings for 2026 already in line with 2025 record levels at historically high prices, Carnival appears well-positioned for continued growth momentum.